Prosecutors yesterday concluded an investigation into alleged financial irregularities at Chi Jen High School (及人中學) in New Taipei City, indicting 15 school executives on charges of embezzlement, fraud and breach of trust.
New Taipei City District Prosecutors’ Office investigators said they found evidence that school chairman Sheng Tien-lin (盛天麟) had colluded with the board of directors and other officials to transfer school assets and operating funds of about NT$680 million (US$21.06 million) into their own bank accounts.
Sheng was indicted along with his brother Sheng Ping-lin (盛平麟), a board director, as well as other school officials and secretaries, following a five-month-long investigation.
An official from the Ministry of Education’s K-12 Education Administration was indicted on charges that he colluded with Sheng to cover up the alleged illegal transfer of school funds, which prosecutors said had been going on since 2006.
Prosecutors and law enforcement officers raided the school in February, seizing documents and other items after monitoring the school’s accounts following complaints of financial irregularities by teachers.
Chi Jen was founded and controlled by two business families, that of Sheng and another surnamed Yang (楊).
Teachers accused executives of taking advantage of the families of students paying cash for tuition and school fees in advance.
Investigators said that members of the two families sat on the board of directors, or appointed friends and relatives, to siphon off money paid in cash by students, which should have been deposited into an account for the school’s operating fund.
Sheng and other board members had been “taking money out of the school fund as though it was a private treasury belonging to their own families,” prosecutors said.
Since 2013, Sheng and school executives have contracted a school lunch provider, which produced fake receipts to receive government subsidies, they alleged.
In return, the contractor gave regular kickbacks to Sheng and other officials, the prosecutors said.
Huang Lu-kuang (黃魯光), a Chi Jen teacher who said he was dismissed last year after reporting alleged financial irregularities at the school to authorities, led four other teachers in filing a petition with the Control Yuan regarding the case.
Huang said the Control Yuan should also investigate Ministry of Education officials over accusations they helped cover up the financial irregularities, even for years after reports had been made.
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